5 March 2009
The Fair Pint Campaign is giving its backing to Greg Mulholland MP’s campaign to ensure if the Government decides to reduce beer duty in the budget, these reductions are passed on to publicans and consumers.
Greg Mulholland, who is the Chairman of the All Party Save Our Pubs Group, has written to the chief executives of Punch Taverns and Enterprise Inns, as well as the British Beer & Pub Association so say that any reductions in beer duty will only be effective in saving pubs if the brewers and the ‘pubcos’ undertake to pass on any reductions on to publicans.
Brian Jacobs, a member of the Fair Pint steering group said:
“Greg Mulholland is absolutely right; there is no point in the Government reducing the levels of duty on beer if the reduction ends up as subsidy for the brewers or the ‘pubcos’.
“Despite the problems being faced by the sector, the ‘pubcos’ are still hiking up the cost of beer to pubs. Enterprise Inns has recently increased prices across their range by twice the rate of inflation. Since 2002 the price that Enterprise charges for a keg of Heineken has risen from around £85 to £147, an increase of over 70% or 8% a year - three or four times the rate of inflation for most of that time. Duty on a pint of beer rose from 27p to 36p in the same period
“If brewers and ‘pubcos’ are serious about helping community pubs, they should be looking at ways of reducing the cost of the beer they supply to pubs”
“If amongst the range of actions the Government could take to help struggling pubs Ministers decided to cut the level of beer duty, we believe that they should only go ahead if brewers and the ‘pubcos’ pledge to pass the reduction on to publicans and consumers.”
“Without this undertaking any reductions will be totally ineffective”
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